>> I don't want to put the kids through a big move, but we could all use a little more personal space.

[Daughter enters kitchen]

>> Even Kayla doesn't want to spend time here anymore.

[Daughter reaches to open cabinet and pulls knob off]

>> Who can blame her? Everything around here could use an update.

[Daughter closes cabinet door]

>> The kitchen, the bathroom...

>> ...the cabinets...
[Daughter rolls knob on the counter to her mom]

[On Screen textFrame 1: A home equity loan can help pay for home repairs.

Frame 2: A home equity loan can help pay for large expenses.

Frame 3: When considering a home equity line or loan, Citi can help you choose.]

>> Is moving even an option? I've still got 10 years left on this mortgage.

>> Maybe it would be worthwhile to renovate and make better use of a more modern space.

[Mom looks at son, shakes head and smiles]

>> A home reno couldn't cost that much. Could it?

[Music plays]

[On Screen textUpgrade or Move?You are not a loan.]

[Citi Logo]

Evaluate your equity

The amount of equity you have in your home is a key factor in determining whether you'll qualify for a home equity line or loan.

What is equity?

Equity is the dollar-amount difference between your home's value and the total amount you owe on your mortgage.

For example, if your current mortgage balance is $100,000 and your home value is $300,000, your home equity is $200,000.

You need a certain amount of equity in your home to qualify for a Home Equity Line of Credit (HELOC) or Fixed Rate Home Equity Loan.

Combined loan-to-value (CLTV) ratio

With a first mortgage, lenders look at the ratio of the loan amount to the home's appraised value, or loan-to-value (LTV) ratio. A mortgage with an 80% LTV means the mortgage amount is 80% of the appraised property value.

But with a home equity line or loan, lenders look at your combined loan-to-value (CLTV) ratio: the ratio of the total amount of the home's current mortgage balances plus the amount you want to borrow, to your home's appraised value.

Calculating your CLTV

To get your CLTV, take your outstanding mortgage balance (if any), add the amount you'd like to borrow for your home equity line or loan, then divide that total by your home's current estimated value.

For example, if your home is worth $300,000, your current mortgage balance is $100,000 and you wish to borrow $75,000, the CLTV would be 58%.

The maximum CLTV for a home equity line or loan can vary but is usually 70-80%.

Peace of mind

Many homeowners take out a HELOC so they can access cash immediately if the need arises. A HELOC can give you the flexibility to cover emergencies or unexpected expenses at a relatively low annual cost.

Tax benefits

You may be able to take advantage of tax deductions for the interest you've paid on your home equity line or loan. Be sure to ask your tax advisor about what you can and can't deduct.

No application fees and no closing costs

With Citi, there are no application fees or closing costs on HELOCs or Fixed Rate Home Equity Loans, so you don't need to save for the extra expenses usually associated with the application process or closing. You can also pay down the principal balance of your HELOC at any time during your draw period to replenish your credit

If you close your line or loan or sell your home within 36 months of closing, you'll have to pay an Early Closure Release Fee. This fee equals the 3rd-party closing costs that Citi paid when you opened your account.

Frequently asked questions

Are there any extra fees if I pay off my Home Equity Line of Credit (HELOC) early?

If you close your HELOC account, sell your home or take any other action that results in the release of the lien within 36 months of account opening, you may have to pay an Early Closure Release Fee, which is equal to the 3rd-party closing costs that Citi incurred when you opened your account.

Are there any extra fees if I pay off my Fixed Rate Home Equity Loan early?

If you close your Fixed Rate Home Equity loan account, sell your home or take any other action that results in the release of the lien within 36 months of account opening, you may have to pay an Early Closure Release Fee which is equal to the 3rd-party closing costs that Citi incurred when you opened your account.

Debt-to-income ratio

Your debt-to-income (DTI) ratio can affect whether you qualify for a home equity line or loan.

Your debt-to-income (DTI) ratio is the percentage of your monthly income that goes toward paying debts. The lower your DTI ratio, the more likely you are to qualify for a home equity line or loan.

Understanding your debt-to-income ratio

You can calculate your DTI ratio by dividing your monthly debt payments by your monthly income, and also include the potential monthly payment on the line or loan amount you want. When reviewing your application, your lender will decide whether your DTI ratio is manageable.

For example, if your monthly income is $4,000, your current monthly debt payments are $820 and your projected line or loan payment is $500, your DTI ratio would be 33% ($1,320 ÷ $4,000).

Reducing your debt-to-income ratio

For a home equity line or loan, lenders often look for a DTI of 43% or less. You can lower your DTI ratio before you apply by:

Frequently asked questions

Is there an application fee for a Home Equity Line of Credit (HELOC) or Fixed Rate Home Equity Loan?

There is no fee to apply for a HELOC or Fixed Rate Home Equity Loan from Citi.

Are there closing costs for a Home Equity Line of Credit (HELOC) or Fixed Rate Home Equity Loan?

Citi will pay the closing costs on your HELOC or Fixed Rate Home Equity Loan. However, if you close your account, sell your home or take any other action that results in the release of the lien within 36 months of account opening, you may have to pay an Early Closure Release Fee which is equal to the 3rd-party closing costs that Citi incurred when you opened your account.

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Important Disclosures

Terms, conditions and fees for accounts, programs, products and services are subject to change.

Home equity lines and loans are not offered for collateral properties located in Alaska. A home equity line or loan is available for single family residential properties (including co-ops in New York, Illinois, District of Columbia, New Jersey and Maryland). Home equity lines are also available for 2-4 family homes that are primary residences (excluding Texas). Home equity loans are also available for 2-family homes that are primary residences (excluding Texas). In Texas, home equity lines and loans are only available on collateral properties that are single family, primary residences. Home equity lines and loans are not available for mobile homes in any state. Certain limitations apply. Lines of credit and loans are subject to credit approval. Rates are subject to change without notice. All rates are current as of 03/19/2018.

For Home Equity Lines of Credit: Variable Annual Percentage Rate (APR) can be as low as Prime plus 0.59% (currently 5.09% variable APR) and as high as Prime plus 3.49% (currently 7.99% variable APR). To qualify for the lowest rate, customers must meet relationship balance requirements (as of the closing date); have excellent credit; use Citibank Auto Deduct (an automated monthly debit from a Citibank deposit account) for repayment; meet certain loan-to-value and lien position requirements; take an initial draw of at least $25,000 at closing; and have a line amount of at least $100,000. Rates will vary depending on the state where the collateral property is located. Additional rate discounts may apply. The variable APR is indexed to the Prime Rate as published in the "Money Rates" section of The Wall Street Journal. Maximum APR is 18%. Annual fee: $50 during the draw period (not applicable if collateral property is located in Texas). Customers who elect to pay closing costs will receive an additional rate reduction (not applicable if the collateral property is located in Texas). Closing costs can range from approximately $672 to $18,217, except in New York where they can range from approximately $716 to $24,527. Closing costs may vary based upon the line amount, property location and title insurance required. Home equity lines of credit are not available in 1st lien position if the collateral property is located in New York. An Early Closure Release Fee may be charged to recover all costs incurred for originating your loan and may apply if you close your account within 36 months (not applicable if collateral property is located in Texas). Property insurance and the fee to release an existing mortgage may be required. Applicable for loan sizes up to $1 million. No 3rd lien positions. Home Equity Lines of Credit are available to U.S. residents only.

Home Equity Lines of Credit with an interest-only draw period require the borrower(s) to have $200,000 or more in personal assets with Citi, or $1,000,000 or more in combined personal assets with Citi and other financial institutions. Personal assets include, but are not limited to: deposit, checking, savings, money market, investment, Certificates of Deposit, stocks and bonds, retirement, mutual fund, annuities and trust accounts.

For Home Equity Lines of Credit with an interest-only draw period: Your monthly minimum payments during the draw period can be as low as "interest-only". If you choose to pay only the amount of interest due, then at the end of the interest-only period you will still owe the original amount you borrowed and your monthly payments will increase because you must pay back the principal as well as interest. Your payment could increase even more if your variable rate increases. Home Equity Lines of Credit with an interest-only draw period are also available in combination with a Citi mortgage. Please speak to a personal banker for more details.

For Fixed Rate Home Equity Loans: Your Annual Percentage Rate (APR) may be as low as 6.24% APR (as low as 6.49% for New York properties) or as high as 8.49% APR (as high as 8.74% for New York properties). To qualify for the lowest rate, customers must meet loan amount, loan-to-value and term requirements, have excellent credit history, and use Citibank Auto Deduct (an automated monthly debit from a Citibank deposit account) for repayment. If you borrow $50,000 at 6.99% APR for a 30-year term, assuming no down payment, you will make 360 payments of approximately $332.32. Other rates and terms may be available. Repayments can be made over 5, 10, 15, 20, 25 or 30 years; however, the monthly payment amount may differ from the example used above based on the loan amount and repayment term selected. If you close your account within 36 months an Early Closure Release Fee may be charged to recover all costs incurred for originating your loan (does not apply to collateral properties in Texas). Property insurance and the fee to release an existing mortgage may be required. Fixed rate home equity loans are not available in 1st lien position.

This page of citi.com contains information about U.S. domestic financial services provided by the Citigroup family of companies and is intended for use domestically in the U.S. Terms, conditions and fees for accounts, products, programs and services are subject to change.

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You are leaving a Citi Website and going to a third party site. That site may have a privacy policy different from Citi and may provide less security than this Citi site. Citi and its affiliates are not responsible for the products, services, and content on the third party website. Do you want to go to the third party site?

Citi is not responsible for the products, services or facilities provided and/or owned by other companies.

Important Information

You are leaving a Citi Website and going to a third party site. That site may have a privacy policy different from Citi and may provide less security than this Citi site. Citi and its affiliates are not responsible for the products, services, and content on the third party website. Do you want to go to the third party site?

Citi is not responsible for the products, services or facilities provided and/or owned by other companies.

Important Information

You are leaving a Citi Website and going to a third party site. That site may have a privacy policy different from Citi and may provide less security than this Citi site. Citi and its affiliates are not responsible for the products, services, and content on the third party website. Do you want to go to the third party site?

Citi is not responsible for the products, services or facilities provided and/or owned by other companies.